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Texas Legislature· HB 2894Effective on 9/1/25

Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
H.B. No. 2894

AN ACT

relating to the provision of state aid to certain local governments

disproportionately affected by the granting of ad valorem tax

relief to disabled veterans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 140.011(a)(2), Local Government Code, is

amended to read as follows:

(2) "Local government" means:

(A) a municipality [adjacent to a United States

military installation]; and

(B) a county [in which a United States military

installation is wholly or partly located].

SECTION 2. Section 140.011(b), Local Government Code, is

amended to read as follows:

(b) To serve the state purpose of ensuring that the cost of

providing ad valorem tax relief to disabled veterans is shared

equitably among the residents of this state, a local government is

entitled to a disabled veteran assistance payment from the state

for each fiscal year that the local government is a qualified local

government. A local government is a qualified local government for

a fiscal year if the amount of lost ad valorem tax revenue

calculated under Subsection (c) for that fiscal year is equal to or

greater than:

(1) two percent of the local government's general fund

revenue for that fiscal year if the local government is:

(A) a municipality adjacent to a United States

military installation; or

(B) a county in which a United States military

installation is wholly or partly located; and

(2) 10 percent of the local government's general fund

revenue for that fiscal year if the local government is:

(A) a municipality in a county:

(i) described by Subdivision (1)(B) that

has a population of:

(a) more than 370,000 but not more

than 380,000; or

(b) more than 83,000 but not more than

84,000; or

(ii) described by Paragraph (B); or

(B) a county with a population of less than

25,000 that is adjacent to two counties that contain the same United

States Army installation, neither of which has a population greater

than 400,000.

SECTION 3. Section 140.011(a)(2), Local Government Code, as

amended by this Act, applies only to the eligibility of a local

government to apply for a disabled veteran assistance payment

beginning with the fiscal year of the local government that ends in

the 2025 tax year.

SECTION 4. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2894 was passed by the House on April

23, 2025, by the following vote: Yeas 148, Nays 0, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 2894 on May 23, 2025, by the following vote: Yeas 137, Nays 0,

2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2894 was passed by the Senate, with

amendments, on May 19, 2025, by the following vote: Yeas 30, Nays

1.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor
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